Yield to Maturity – YTM vs. Spot Rate. What’s the Difference?
- Investing News
admin
- 0
- 1 minute read
A bond’s yield to maturity is the total interest it will earn, while its spot rate is the price it is worth at any given time in the bond markets. Here’s why a bond’s spot rate fluctuates even though its interest rate is set.
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-611491884-eab74d4b61364ec987b80bff4c516a23.jpg "5 Financial Considerations for Later-in-Life Marriage")
:max_bytes(150000):strip_icc():format(jpeg)/INV_IRACustodian_GettyImages-1473133514-5eceea96894947b0a4f2f8e344696dad.jpg "Retirement Tips: How To Choose the Best IRA Custodian")